latex, and communications equipment.
KEY TERMS/CONCEPTS
The Harmonized System
The HTS is based upon the Harmonized Commodity Description and Coding System, better known as the Harmonized System (HS), which promotes common customs procedures worldwide. The HS was designed as a “core” system, permitting individual countries adopting it to make further product subdivisions according to their particular tariff or statistical needs. This “core” international system promotes a high degree of international uniformity in customs tariffs and foreign trade statistics.
The HS has 97 chapters indexed in 21 sections – generally grouped together by branches of industry, commerce, and progressing from raw materials to finished goods. These groupings are not absolute, but serve as an indication of the proper classification.
The HTSUS also contains the General Rules of Interpretation (GRIs) as well as section and chapter notes, which govern the proper classification of all articles in the HTSUS (see page 3 of this Chapter below).
Harmonized Tariff System Numbering
In the HS, each Heading is assigned a four-digit number. The first two digits of that number denote the chapter and the second two digits indicate the Heading number within that chapter. For example, HTS 8517 is to be found in chapter 85 and is the 17th Heading within chapter 85. A six-digit number identifies each associated Subheading. The HS classification is common to all countries, which use the HS up to the Subheading (6-digit) level.
Each country using the HS is permitted to more specifically identify articles beyond the six-digit international number. Thailand has added two additional sets of two digits each. Based on the protocol governing the implementation of the ASEAN Harmonized Tariff Nomenclature (AHTN protocol), each tariff provision is coded in eight digits and the tariff reporting number, which incorporates the statistical suffix, is ten digits.
The HTS is hierarchical in nature. Thus, in order for an article to be classified at a given 8-digit Subheading level it must be classifiable at its 6-digit level, and in order to be classified at the 6-digit Subheading it must be classifiable at its 4-digit Heading level. Consequently, a given article must fall within its particular section and chapter before it can be classified in any one heading or subheading.
Preceding each section and chapter are legal notes. These notes define the precise scope and limits of sections, chapters, headings, and subheadings of the HTS. They also contain rules intended to prevent the conflict of competing provisions. Through these particular rules, headings, chapters, or sections may be given precedence over others.